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Written by:
Denis H
Date added:
December 28, 2014
Level:
University
Grade:
A
No of pages / words:
10 / 2592
Was viewed:
1877 times
Rating of current essay:
Essay content:
Another use of options that serves companies is in executive compensation packages. For many years critics have argued that salaries and bonuses have been far too excessive and in some cases unwarranted. When a business isn't performing well, should a CEO receive millions while the company's shareholders loose millions as the stock price wanes? To reduce compensation on the books, business had lowered executive pay only to make up for it with generous options offerings...
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This would also tie in compensation to performance, and hopefully motivate the CEO to see to it that shareholder value is maintained. Stock options have been around since the 1950's , but they have become under scrutiny in the last 20 years, and especially with the more recent dot-com bubble and Enron scandal...
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